What is Bitcoin?

Okay.. This is complicated. There is a lot of information to go over but here is the shortest answer possible. Then we will dive a little deeper in details, and we still wont get all of them. Just bear with me. Bit coin is by it's formal definition: "Crypto-currency that has no mediators". Lets dissect that a bit. Crypto-currencies are like mathematical equations that are so complex you need a massively fast computer to comprehend it and solve it. The solution to the problem yields a specific answer, the answer is logged and checked against Bitcoin's database where there are only a total of 21 million. So in a nutshell think of Einsteins E=MC^2. Lets say before Einstein was able to solve this Bitcoin had the answer already and gave the answer intrinsic value, say $100. Which in the early 1900's was pretty decent! When Einstein finally did it he could bring the answer (E=MC^2) to Bitcoin's layer and ask them if he was right. They then say "yes that is correct" and then all of the sudden his answer has value.

That is the best I have for an analogy on Bitcoin. They are like extremely difficult equations that computers can solve and verify the validity of in order to make value of it. So. Here are a couple of super common questions since there is value to these (bits of data) there is the question of how it ends up as cold hard cash in your pocket.

Can I transfer bitcoins into my bank?